It's just another day, but it is the first trading day of the year

It is just another day but it is the 1st trading day of the year. As North American traders enter the USD is the strongest of the major currencies, while the NZD is the weakest. Overnight China's manufacturing data Mrs. expectations. The European PMI data came in around expectations but apart from the French PMI each was below the 50 level indicative of a contracting manufacturing base. The EUR is trading mixed on the 1st day of the trading year.

It's just another day, but it is the first trading day of the year

Looking at the ranges and changes, the NZDUSD has outperformed versus its 22 day average trading range (Range of 55 pips). It is also trading near its lows for the day at -30 pips on the day. The GBPUSD is also near its lows at -56 pips. The USDCHF and EURUSD are near extremes (USD highs).

The ranges and changes for the major currency pairs

In other markets as the new year begins in North America:

  • spot gold is up $6.04 or 0.4% at $1523.35
  • WTI crude oil futures are up unchanged at $61.06

In the premarket for US stocks, the major indices are off to a good start:

  • Dow is up 163 points
  • S&P index is up 17 points
  • NASDAQ index is up 67 points

Each of the major indices are close to record high levels.

In the European stock market the major indices are also up smartly to start the trading year:

  • German DAX +0.9%
  • France's CAC, +1.36%
  • UK's FTSE, +0.9%
  • Spain's Ibex, +1.5%
  • Italy's FTSE MIB, +1.4%

In the US debt market yields are mostly lower with long end down the most. The 2-10 spread has narrowed a bit.

US yields are mixed with a flatter yield curve

In the European debt market, 10 year yields are also mixed with German yields down -0.5 basis points and Italian yields up 4.0 basis points.

Benchmark 10 year European yields are mixed